OUR FUTURE IN SAFETY 2014-15 Business Plan Technical Standards and Safety Authority
EXECUTIVE SUMMARY Since 1996, the Technical Standards and Safety Authority (TSSA) has been entrusted by the government of Ontario with the safety of Ontarians in four key sectors: boilers and pressure vessels and operating engineers; elevating devices, amusement devices and ski lifts; fuels; and upholstered and stuffed articles. TSSA is Ontario s public safety regulator mandated by the Government of Ontario to enforce provincial safety regulations and enhance public safety. Headquartered in Toronto, TSSA employs over 400 staff, approximately 75 percent of whom work in operations. TSSA is accountable to the Ontario government, the residents of Ontario and the industries it regulates. TSSA s purpose is to promote and enforce public safety. While TSSA is mandated by the Government of Ontario to enforce the Technical Standards and Safety Act, 2000 and associated regulations, the organization has embraced a much broader role than compliance. Through advocacy, including awareness and education, and enforcement actions, TSSA seeks to continuously improve safety. Since many incidents are a result of people unintentionally and often unknowingly putting themselves at risk, TSSA seeks to act as both a regulator and an advocate firmly committed to improving the safety of Ontarians. To best achieve its vision to be a valued advocate and recognized authority in public safety, TSSA s strategic plan for fiscal years 2012/2013 to 2016/2017 outlines four strategies designed to continuously improve safety and support achievement of the following goals for the plan period: our safety performance will indicate positive safety trends consistent with our compliance goals; our safety performance metrics will be recognized by Canadian regulators as the benchmarks to measure safety; our employees will be highly engaged, empowered, and proud of what TSSA stands for as measured by the employee engagement survey score; and our regulated customers will believe that we deliver high value by promoting and enforcing public safety. TSSA will take steps to enhance organizational effectiveness to most effectively promote and enforce safety 2 Technical Standards and Safety Authority Business Plan 2014-15 3
The four strategies to continuously enhance safety are as follows. COMPLIANCE FIRST A better state of compliance means an enhanced level of safety in Ontario. Through TSSA s Leverage Risk Knowledge strategy, TSSA gains an enhanced understanding of risk to Ontarians and the state of compliance. This is put into action under the Compliance First strategy. Non-compliance can result from different attitudes regarding safety, or alternatively a lack of knowledge of the regulations. To achieve its vision as a recognized authority in public safety, TSSA needs to continue to strengthen its demonstrated ability to manage non-compliance effectively. TSSA will apply knowledge gained from direct engagement and through customer surveys to design initiatives that reflect a better understanding of root-cause. LEVERAGE RISK KNOWLEDGE TSSA s risk-informed decision-making (RIDM) manages public safety through an understanding of the potential and most effective means of controlling risks. By leveraging risk knowledge, TSSA is positioned to design effective compliance measures and goals and, through the development of safety performance metrics, monitor and assess effectiveness. TSSA has developed a five-year plan to enhance the governance, knowledge base and application of RIDM. SHARED RESPONSIBILITY FOR SAFETY Although some causal factors can be eliminated or constrained through means contained within TSSA s delegated mandate, other factors, particularly those related to operator or user behaviour, can at best only be influenced by TSSA. This strategy supports TSSA s commitment to promote public safety, leading to its vision to become a valued advocate. ORGANIZATIONAL EFFECTIVENESS To achieve its vision, TSSA will enhance organizational effectiveness to most effectively promote and enforce safety, and ensure the right resources are in the right place at the right time doing the right things. This is designed to enhance safety, employee engagement and customer value. For each of the four strategies, the business plan outlines specific initiatives and targets consistent with the third year of the five-year strategic plan. This year, the following key areas of focus were identified for attention in developing business plan initiatives to support achievement of the four strategies: the importance of continuing efforts to ensure a solid foundation for its core activities, including information assets; an opportunity to enhance safety and compliance through an increased focus on promotion; and a desire to start building an innovation culture at TSSA. This business plan also sets annual goals and performance targets in the form of a balanced scorecard. TSSA is committed to continuous improvement of its performance metrics. TSSA reports on its performance against all balanced scorecard targets in its annual report. TSSA utilizes the results of the assessments, both accomplishments and challenges, to determine the root-cause of its successes and shortfalls as a means of enhancing its future performance. TSSA s strategic plan, business plan, annual report and annual safety performance report are available on the organization s website at www.tssa.org. 4 Technical Standards and Safety Authority Business Plan 2014-15 5
TABLE OF CONTENTS 1. Corporate Overview 8 1.1 Corporate Profile 8 1.2 Vision, Mission, Mandate and Values 8 1.3 Commitment to Stakeholders 12 1.4 Commitment to the Ministry of Government and Consumer Services 13 2. Business Planning 14 2.1 Overview 14 2.2 Delivering on the Strategic Plan 14 3. Initiatives for the Fiscal Year 2014/2015 17 3.1 Strategic Priority Initiatives 17 4. Assessment of Corporate Resources 20 4.1 Human Resources 20 4.2 Information Technology 20 4.3 Financial Resources 22 5. Managing Risks to Delivery of the Plan 25 6. Performance Management 25 Appendix 1: Balanced Scorecard for Fiscal Year 2014/2015 26 Appendix 2: Performance Against Targets for Fiscal Year 2013/2014 Business Initiatives 28 6 Technical Standards and Safety Authority Business Plan 2014-15 7
1. CORPORATE OVERVIEW 1.1 CORPORATE PROFILE 1.1.1 ORGANIZATION Since 1996, TSSA has delivered public safety services as delegated by the Government of Ontario in four key sectors: boilers and pressure vessels, and operating engineers; elevating devices, amusement devices and ski lifts; fuels; and upholstered and stuffed articles. TSSA is Ontario s public safety regulator mandated by the Government of Ontario to enforce provincial safety regulations and enhance public safety. Headquartered in Toronto with a team of over 400 safety professionals, approximately 75% of whom work in operations, the organization is passionate about the care entrusted to it as Ontario s public safety regulator. TSSA remains accountable to the Ontario government, the residents of Ontario and the industries it regulates. TSSA uses a cost recovery approach to set fees, including registration, inspection, engineering, examination, permit and licensing, allowing TSSA to deliver on its mandated activities. TSSA s funding model is developed in a transparent and consultative manner, which includes stakeholder engagement and appropriate advance notice. 1.2 VISION, MISSION, MANDATE AND VALUES TSSA s Purpose: To promote and enforce public safety. TSSA s Vision: To be a valued advocate and recognized authority in public safety. TSSA S CORPORATE VALUES: Safety Be safety conscious at all times. Leadership - Be the best in actions and words. Integrity - Be honest and ethical. Respect - Build trust and earn respect. Accountability - Be responsible for all actions and deliver on all commitments. Communication - Be an effective and efficient communicator, and an active listener. Teamwork - Work together, respect individuals and celebrate success. 1.2.1 GOVERNANCE TSSA is governed by a 13-member board of directors. TSSA s board of directors is responsible for stewardship, including oversight of the organization, and taking a leadership role in the development of the organization s strategic direction. The board and management monitor emerging governance best practices and act to adopt those that best serve to strengthen TSSA s governance regime. TSSA is committed to achieving the highest standards for critical data used for delivery of its safety mandate. As such, TSSA is taking action to consistently document critical data elements for all of its safety programs and establish processes to closely monitor and, where appropriate take action, to ensure these elements meet standards for completeness, compliance with business rules, timeliness and accuracy. TSSA s board has taken steps to reflect this enhanced approach to oversight of the organization s information assets consistent with best practice. Going forward TSSA will report in its annual report on progress made and results achieved in putting these commitments in place. 1.2.2 SAFETY VALUE CHAIN AND PROGRAM AREAS While TSSA is mandated by the Government of Ontario to enforce the Technical Standards and Safety Act, 2000 and associated regulations, the organization has embraced a much broader role than compliance. Through advocacy, including awareness and education, and enforcement actions, TSSA seeks to continuously improve safety. Since many incidents are a result of people unintentionally and often unknowingly putting themselves at risk, TSSA seeks to act as both a regulator and an advocate firmly committed to improving the safety of Ontarians. Thus, TSSA has a dual role to 8 Technical Standards and Safety Authority Business Plan 2014-15 9
encourage and ensure compliance with the regulations, as well as educate and promote public safety. In keeping with this dual role, TSSA s vision is to be a valued advocate and recognized authority in public safety. TSSA provides a variety of safety-related services that it refers to as its safety value chain. In identifying its safety value chain activities, TSSA has included activities that enable both elements of its purpose to promote and enforce. In addition, certain activities within the safety value chain outlined below are, by definition, more preventative in nature, and TSSA is committed to increasing its preventative efforts. TSSA s safety value chain activities in order of preventative to reactive include: Influence codes and regulations: support government in developing regulations, and participate in code development and standard setting. Inform, educate and modify behaviour: inform and educate the public and industry participants regarding better safety practices and issues, new codes, regulations and requirements, and seek to influence safe behaviours. License, register and certify: influence training institutions to properly train tradespeople, and effectively examine and certify tradespeople, register plants and equipment, and license devices, sites and contractors. Review designs: review the design of new technology, new installations, alterations and modifications to existing equipment and plants for compliance to codes and regulations. Inspect and monitor: inspect/audit tradespeople, contractors, plants, equipment and sites for compliance with codes and regulations, and monitor developing safety-related trends or issues. Enforce: take appropriate regulatory actions to resolve non-compliance situations or take appropriate actions in response to safety incidents. Investigate: investigate safety incidents or near-misses. TSSA s value proposition is to put the greatest emphasis on preventative activities within the safety value chain. TSSA recognizes that the evolutionary path toward this goal will vary for each sector. To deliver on its value proposition, TSSA gives priority attention to identified gaps in compliance through the application of best practices in safety compliance management. Where opportunities remain to enhance safety, TSSA will design and implement safety promotion solutions such as public safety awareness campaigns. In addition, TSSA plays a key advisory role to the Ministry of Government and Consumer Services (MGCS) to ensure appropriate safety standards are set out in legislation and regulation through a mutually-beneficial policy development process. An outline of TSSA s associated responsibilities and the sectors it regulates are summarized below. TSSA outlines its achievements and activities in its annual report. BOILERS AND PRESSURE VESSELS AND OPERATING ENGINEERS SAFETY PROGRAM Boilers And Pressure Vessels TSSA is responsible for regulating all pressure-retaining components manufactured or used in Ontario, in accordance with the Technical Standards and Safety Act, 2000 and applicable regulation, with a commitment to ensuring the safety of boilers, pressure vessels and piping systems. TSSA also provides its services in this area to support the safety of Ontario s nuclear power plants. Operating Engineers Under the Technical Standards and Safety Act, 2000 and applicable regulation, TSSA examines and certifies power plant engineers and operators. TSSA also registers operating plants in order to specify the operating requirements under the regulation, including the certification level of the operating engineering personnel. ELEVATING AND AMUSEMENT DEVICES SAFETY PROGRAM Elevating Devices TSSA is responsible for the oversight of elevating devices in Ontario under the Technical Standards and Safety Act, 2000 and applicable regulation. These devices include elevators, escalators, moving walks, lifts for persons with physical disabilities, construction hoists and ski lifts (passenger ropeways). Elevating device mechanics, including ski lift mechanics, must be certified in order to install and maintain elevating devices. TSSA also provides elevator inspection services under contract to Public Works and Government Services Canada to ensure the safety of elevating devices in federal buildings in Ontario. Amusement Devices TSSA is responsible for regulating the safety of permitted amusement rides in Ontario under the Technical Standards and Safety Act, 2000 and applicable regulation. These devices include roller coasters, Ferris wheels, waterslides and go-karts. Ride mechanics must also be certified, and are responsible for the safe and proper set-up, maintenance and operation of all rides. FUELS SAFETY PROGRAM TSSA provides fuel-related safety services, in accordance with the Technical Standards and Safety Act, 2000 and applicable regulations, associated with the safe transportation, storage, handling and use of fuels such as gasoline, diesel, propane, natural gas, digester and landfill gas, and hydrogen. TSSA delivers programs and services that regulate the safe use of motor and energy fuels for private, industrial and commercial uses in Ontario. TSSA regulates fuel suppliers, storage facilities, transport trucks, pipelines, contractors and their certified employees, and equipment or appliances that use fuels, including residential applications. TSSA additionally works to protect the public, the environment and property from fuel-related hazards such as spills, fires and explosions. UPHOLSTERED AND STUFFED ARTICLES SAFETY PROGRAM TSSA protects the public from potential hazards related to the use of upholstered and stuffed articles sold in Ontario in accordance with the Technical Standards and Safety Act, 2000 and applicable regulation. In addition to promoting safety, TSSA s aim is to protect consumers against fraud and ensure consistent requirements for all upholstered and stuffed articles registered for sale or distribution in Ontario. ENFORCEMENT OF SAFETY REGULATIONS As a delegated regulator of public safety, TSSA s mandate requires it to undertake inspection, enforcement and other roles. Although the organization has the authority to order changes to and even shut down unsafe operations when necessary, its focus is on prevention. TSSA works cooperatively with its industry partners and other stakeholders, including the general public, to improve safety in the sectors it regulates. Consistent with its commitment to putting public safety first through the efficient and effective enforcement of the Technical Standards and Safety Act, 2000 and its associated regulations, TSSA uses a variety of tools including targeted education programs, licence revocation, legal orders and prosecution to ensure public safety. TSSA balances its resources by establishing and applying risk management criteria to the allocation of available enforcement tools. TSSA will apply these tools in a progressive manner. The choice of enforcement action will be appropriate for and escalate with the nature of the violation. Enforcement decisions are assessed according to the following criteria: violations of law, which result in personal injury, substantial property damage or have a potential to cause personal injury or substantial property damage, and incidents with catastrophic or near catastrophic results; the vigorous prosecution of high profile incidents is an effective way to promote public safety and enhance compliance; 10 Technical Standards and Safety Authority Business Plan 2014-15 11
non-compliance in areas of perceived or persistent problems, regardless of the seriousness of the violation, persistent or previous offenders, or offences reflecting a lack of safety commitment; all available data and resources will be utilized to identify compliance challenges and public risk; enforcement efforts will be determined based on the nature of the violation; and non-compliance with statutory authorization requirements, challenges to TSSA s inspection or enforcement authority, such as disregard for inspector s orders or statutory licensing requirements. The authorization and inspection requirements are the cornerstone of an effective regulatory regime. Maintaining the integrity of these important legislative provisions is necessary to avoid a deterioration of public safety standards. As such, all available resources will be utilized to determine the course of enforcement action based on the nature of the violation/non-compliance toward statutory authorization requirements. 1.3 COMMITMENT TO STAKEHOLDERS TSSA s responsibility to its stakeholders is characterized by a high degree of accountability and transparency, which is expressed through the following responsibility statements. To all stakeholders: The conduct of TSSA and its employees will always be honest, professional and ethical. To the public: TSSA and its employees will work with diligence and competence to protect the public interest by maintaining and enhancing safety. TSSA will lead the way in working to prevent avoidable incidents. TSSA will educate the public so they may take personal responsibility for their safety. To the government: TSSA will perform its delegated responsibilities with diligence, observing the principle of ensuring a fair, safe and informed marketplace that supports a competitive economy. TSSA will recommend amendments to delegated legislation and regulations that will enhance public safety, and advise MGCS promptly of any matters that may require action or attention. To its customers: TSSA will provide timely and value-added services at a fair price. TSSA will provide an objective and expert application of its delegated authority that promotes a level playing field and continuous improvement. TSSA will consult with its stakeholders and work in partnership to communicate performance and earn their trust. Feedback on how TSSA is meeting its commitments and responsibilities is solicited and always welcome. ADVISORY COUNCILS Partnering with industry, TSSA consults with advisory councils that have been established for each of its regulated sectors. TSSA and its nine industry advisory councils work closely together in a spirit of continuous improvement, primarily to identify and reduce risk, and additionally to provide comment on public education plans, training proposals, regulatory changes, design changes and new inspection processes. Industry advisory councils are supported by technical committees, called risk reduction groups, which propose operating improvements for their sectors. They are instrumental in looking at specific safety challenges in their sectors and helping TSSA find effective solutions. This close partnership with industry is fundamental to the improvement of public safety in Ontario. Providing an effective balance to the interests of industry, TSSA also benefits from a Consumers Advisory Council that provides independent, consumer-focused advice and guidance related to the impacts of TSSA s activities on the public or on consumers who are purchasers or users of products and/or devices regulated by TSSA. More information regarding the advisory councils, including terms of reference, composition and minutes of meetings, can be accessed through TSSA s website at www.tssa.org. COMPLAINT HANDLING TSSA defines complaints as an expression of dissatisfaction with respect to services it provides, actions of its staff or the complaint process itself. Although TSSA seeks to address complaints at the level they are raised, should the matter require further attention, the complaint is escalated to more senior personnel, up to and including statutory directors appointed under the delegated safety legislation or the President and Chief Executive Officer. TSSA tracks the results of its complaint handling and includes in its annual report a summary of complaints for the fiscal year. TSSA will continue to strive toward improving processes and service delivery as a way to increase customer satisfaction and improve safety outcomes in Ontario. A newly appointed TSSA Ombudsman additionally assists in resolving issues and developing ideas for improving the way the organization delivers its services and engages its staff and those regulated by TSSA. More information on the Ombudsman can be accessed through TSSA s website at www.tssa.org. 1.4 COMMITMENT TO THE MINISTER OF GOVERNMENT AND CONSUMER SERVICES As an organization responsible for public safety, TSSA must be accountable and transparent. TSSA is one of the first public safety organizations to embrace outcome-based reporting, providing all its stakeholders with an understanding of safety in its delegated sectors. As a result, TSSA provides transparent performance reporting through its strategic plan, business plan, annual report and annual public safety performance report. All of these documents are available to the public and can be accessed through TSSA s website at www.tssa.org. In addition, TSSA reviews its performance with MGCS on a quarterly basis by way of a safety performance report that provides detailed information on safety outcomes and services, including compliance levels, incidents and injuries. TSSA is committed to continuously enhancing both the quality and comprehensiveness of its data and the content of its reporting to MGCS to ensure that the ministry s needs are fully met or exceeded. FRENCH LANGUAGE SERVICES Consistent with its French Language Services Policy, TSSA responds to all requests for French services as they arise during the year. TSSA monitors requests for services in French to determine the appropriate level of service to meet public safety and customer service needs. TSSA will continue to strive toward improving processes and service delivery as a way to increase customer satisfaction and improve safety outcomes in Ontario. 12 Technical Standards and Safety Authority Business Plan 2014-15 13
2. BUSINESS PLANNING 2.1 OVERVIEW TSSA s strategic plan for fiscal years 2012/2013 to 2016/2017 outlines a path forward for the organization to achieve its vision with a focus on four strategies. A copy of the strategic plan is posted on TSSA s website. The business plan for fiscal year 2014/2015 makes operational the third year of this five year strategic plan. In particular, it outlines the initiatives planned for the fiscal year to achieve the identified strategies. It also includes a balanced scorecard for performance monitoring and measurement purposes. TSSA reports on its success against the targets identified in the balanced scorecard in its annual report. 2.2 DELIVERING ON THE STRATEGIC PLAN TSSA s strategic plan for fiscal years 2012/2013 to 2016/2017 identified four strategies designed to continuously improve safety and support the organization s achievement of its vision through the following vision goals over the plan period: Our safety performance will indicate positive safety trends consistent with our compliance goals. Our safety performance metrics will be recognized by Canadian regulators as the benchmarks to measure safety. Our employees will be highly engaged, empowered, and proud of what TSSA stands for as measured by the employee engagement survey score. Our regulated customers will believe that we deliver high value by promoting and enforcing public safety. The four strategies identified in the strategic plan to achieve these goals are as follows. COMPLIANCE FIRST It is a key assumption that a better state of compliance represents an enhanced level of safety in Ontario. Through the Leverage Risk Knowledge strategy, TSSA obtains an enhanced understanding of safety risk to Ontarians and the state of compliance. This knowledge is put into action under the Compliance First strategy through the design and delivery of compliance initiatives. It is fundamental to TSSA s commitment as a regulator to ensure compliance with the regulatory requirements. Non-compliance may reflect a lack of awareness of the safety requirements, a belief that the requirements do not address a safety risk or a determination that the risk of non-compliance is lower than the cost of compliance, or possibly a combination of these. TSSA will apply knowledge gained from its direct engagements and through its customer value surveys to design compliance initiatives that reflect a better understanding of their root-cause. Compliance cannot be taken for granted, especially with economic and other market pressures that may influence safety decisions. As such, TSSA will always exercise appropriate due diligence in improving compliance. LEVERAGE RISK KNOWLEDGE TSSA s innovative RIDM initiative is the basis of TSSA s approach to managing its public safety responsibilities by providing an understanding of the potential and most effective means of controlling risks. Using this sound and systematic approach enables TSSA to be an effective regulator through transparent and accountable safety decision-making. By Leveraging Risk Knowledge, TSSA is positioned to design rational and effective compliance measures and associated goals and, through the development of the safety performance metrics, monitor and assess their effectiveness. TSSA has developed its next five-year work plan to enhance the governance, knowledge base and application of RIDM, which forms a foundation for this strategy. SHARED RESPONSIBILITY FOR SAFETY Although some causal factors can be eliminated or constrained through regulations, codes, design, training, inspections and a variety of other means within the delegated mandate provided to TSSA, other causal factors, particularly those related to operator or user behaviour, can at best only be influenced by TSSA. The Shared Responsibility for Safety strategy directly supports TSSA s commitment to promote public safety leading to its vision to become a valued advocate. ORGANIZATIONAL EFFECTIVENESS In order to achieve its vision, TSSA will take steps to enhance organizational effectiveness to promote and enforce safety, and ensure the right resources are in the right place at the right time doing the right things. This strategy is designed to enhance safety, employee engagement and customer value. TSSA has established a robust strategic and business planning process supported by a commitment to continuous improvement. As a starting point, TSSA conducts an annual assessment of internal and external factors that have the potential to impact the achievement of these goals. Key inputs to this process include the Annual Safety Performance Report, externally administered customer value and employee engagement surveys, and input from TSSA s advisory councils and the Chief Safety and Risk Officer. This assessment, combined with ongoing monitoring of the achievement of business initiatives designed to address the identified goals and strategies, enables TSSA to identify opportunities to revise or refine its approach. No significant new issues or trends were identified in a broader context during the recent planning cycle. As part of its planning process, TSSA s board and management annually review and assess the strategic plan. This year s review provided an opportunity for a number of new directors to become engaged and resulted in a positive affirmation of the plan. As a result of this engagement, the following key areas of focus were identified for attention in developing business plan initiatives to support achievement of the four strategies: the importance of continuing efforts to ensure a solid foundation for its core activities, including information assets; an opportunity to enhance safety and compliance through an increased focus on promotion; and a desire to start building an innovation culture at TSSA. The ability to make effective safety decisions, manage reputational risk, and position the organization to take advantage of innovation opportunities is dependent on a solid foundation. Last year s business plan reflected this objective and ensured that key foundational initiatives were given priority over desirable enhancements to current business practices. Foundationbuilding business plan initiatives included: ensuring that TSSA meets its delegated commitments (e.g. elimination of periodic inspection backlogs, historical regulatory gaps in delivery of the Boilers and Pressure Vessels regulation); and modernizing the database that is fundamental to making informed safety decisions and responding effectively to potential future incidents. Significant progress has been made on these foundationbuilding initiatives. That said, more work remains to be done in initiatives reflected this year to ensure data management excellence, completion of follow-up inspections, and in partnership with the Ministry of Government and Consumer Services, continued actions to address identified gaps in the administration of the Boilers and Pressure Vessels Regulation. TSSA believes that with this continued focus outlined in this year s business plan initiatives, a solid foundation will be established for its next strategic plan starting in fiscal year 2016/2017. TSSA s value proposition outlines a desire to put the greatest emphasis on preventative activities within the safety value chain. The strategic plan states that this objective is tempered with the recognition that priority will be given to the Compliance First strategy, including the foundationbuilding initiatives noted above. To date, safety promotion efforts at TSSA have resulted in the design and delivery of a number of proven public awareness campaigns, positioning TSSA to leverage this success through partnerships consistent with the Shared Responsibility for Safety strategy. In addition to a focus on this partnership approach, TSSA has introduced a business plan initiative that seeks to transfer the knowledge gained through this work to support TSSA staff in achieving increased compliance. Recognizing the opportunity to begin promoting a culture that support innovations, TSSA has established an employee-led committee with a mission to seek innovative solutions by identifying ways to incorporate emerging technology and innovative thinking to increase productivity, improve the customer service experience, and efficiently manage selected organizational activities. In addition, under the leadership of the Innovation Committee, TSSA will look for ways to enhance current processes by identifying barriers and leveraging current resources, and collaborate with partners and stakeholders to increase visibility and accessibility of TSSA s service offerings while promoting and enforcing public safety. 14 Technical Standards and Safety Authority Business Plan 2014-15 15
3. Initiatives for the Fiscal Year 2014/2015 3.1 STRATEGIC PRIORITY INITIATIVES As part of its planning process each year, TSSA identifies initiatives, both existing and proposed, that can contribute to the achievement of the objectives identified in the strategic plan. These initiatives are assessed, evaluated and prioritized for the strategic plan horizon (this business plan represents year three of a five-year plan). Following this initial assessment, they are further prioritized to reflect the execution capacity of the organization, recognizing its responsibilities to continue to deliver its safety mandate. Consistent with the areas of focus identified this year, the business plan outlines 10 specific initiatives and targets consistent with the third year of the five-year strategic plan. Many of these initiatives are multi-year and target completion dates are noted, along with a detailed description, a link to the strategic plan, and a 2014/2015 fiscal year target. STRATEGY ONE: COMPLIANCE FIRST INITIATIVE DESCRIPTION OF INITIATIVE FISCAL YEAR TARGET Objective: Achieve positive safety trends by addressing areas of significant non-compliance Achieve and sustain zero follow-up inspection backlog Continuing the success of the periodic inspection backlog project, this multi-year initiative is aimed at reducing the number of backlog follow-up inspections to zero, implementing controls to maintain that level into the future, and ensure that the information supporting the process is accurate. The targets for fiscal year 2014/2015 are to build a comprehensive plan and strategy, and begin execution of that plan and strategy, paving the way to complete the initiative in fiscal year 2015/2016. A reduction in the total number of backlog follow-up inspections of 25%, as measured on April 30, 2015 compared to April 30, 2014. Objective: Support continued positive compliance behaviour through effective incentives Enhance the fee framework using incentives to positively influence safety behaviours Enhance advocacy to improve compliance This new multi-year initiative seeks to build on the learnings from the most recent fee review to design and implement incentive-based fees and significantly enhance the structure and processes associated with TSSA s overall value-for-money goal. This is consistent with TSSA s fee review principles and will be part of the regular three-year fee review scheduled for completion in fiscal year 2015/2016. A future fee framework reflecting the needs of stakeholders (including regulated customers and government) and consistent with guiding principles is provided to the TSSA Industry Advisory Councils. This initiative will enhance TSSA staff delivered advocacy activities through the development of standardized tools, improved access to materials, and focused engagement approaches. A future fee framework reflecting the needs of stakeholders (including regulated customers and government) and consistent with guiding principles is provided to the TSSA. Provide standardized advocacy engagement tools for general application and design an enhanced advocacy approach based on a completed pilot. 16 Technical Standards and Safety Authority Business Plan 2014-15 17
STRATEGY TWO: LEVERAGE RISK KNOWLEDGE STRATEGY THREE: SHARED RESPONSIBILITY FOR SAFETY INITIATIVE DESCRIPTION OF INITIATIVE FISCAL YEAR TARGET INITIATIVE DESCRIPTION OF INITIATIVE FISCAL YEAR TARGET Objective: Improved safety decision-making by enhancing the risk knowledge base Objective: Reduce public safety risk where compliance is not a factor by modifying user behaviour Enterprise Information Architecture Reflecting the importance of data at TSSA for safety decision-making and reputational risk management, Future-state business processes documented for three major this initiative takes a holistic approach to establishing and processes across core mandated maintaining a sustainable foundation for effective data activities and for major processes management. This multi-year initiative is expected to in Human Resources. Complete continue beyond the timeframe of the strategic plan HR Data model that supports the ending 2016/2017. new HR processes. Complete the RFP process and vendor/ software selection for HR. Objective: Improved safety decision-making by utilizing the knowledge base Manage potential safety risks The safety risk posed by aging equipment has been identified Develop a guideline document associated with aging as a priority. Through this continuing multi-year initiative that provides the methodology devices through risk-informed scheduled for completion in fiscal year 2014/2015, TSSA and process for identification, decision-making will develop risk-based methods to determine: service lives; evaluation, and management frequencies of inspection; replacement intervals; and other of risks associated with aging engineering solutions. devices. Objective: Increased effectiveness of the safety performance metrics through the promotion of risk-informed decision-making Risk-informed decision-making Recognition of TSSA s safety performance metrics as An accredited Standards Development is recognized as an innovative the benchmark to measure safety is a vision goal. Organization is selected regulatory approach This ongoing initiative seeks independent validation to support the development of a of risk-informed decision-making as the foundation to Public Interest Risk achievement of this goal. Management guideline. Increase awareness levels to CO is one of the largest sources of safety incidents with a reduce carbon monoxide (CO) significant percentage of injuries resulting from a lack of incidents resulting from user awareness, understanding or knowledge of risks associated behaviour with fuel-fired appliances. TSSA has developed proven CO engagement strategies and now seeks to obtain partnership commitments to support their expanded delivery. Objective: Achieve positive safety trends through effective and viable safety partnerships Enhance compliance oversight TSSA is working collaboratively with the Ministry of for insured boilers and pressure Government and Consumer Services (MGCS) on a multi-year vessels initiative targeted to be completed in fiscal year 2015/2016, to enhance compliance oversight of insured boilers and pressure vessels and ensure alignment of TSSA s compliance activities with the regulatory framework. STRATEGY FOUR: ORGANIZATIONAL EFFECTIVENESS INITIATIVE DESCRIPTION OF INITIATIVE Objective: Build a strong foundation to succeed Develop a Training Centre of This multi-year initiative scheduled for completion in fiscal Excellence year 2015/2016 will develop online training and reporting capability for a wide variety of standard business, leadership, TSSA corporate-specific and TSSA technical training to ensure a comprehensive and consistent skillset within each program and across the organization. Objective: Fully utilize TSSA resources to optimize performance Obtain two new CO partnership commitments. Work collaboratively with MGCS to develop and refine the preferred option. FISCAL YEAR TARGET Secure and load training content to support two significant business priorities and develop business reporting for all training (elearning and classroom). Develop innovation capacity TSSA seeks to build innovation capacity through a committee that can be leveraged as the conduit to the broader organization and external stakeholders. Support achievement of regulatory requirements as they relate to the Pan Am games through application of innovative approaches. 18 Technical Standards and Safety Authority Business Plan 2014-15 19
4. ASSESSMENT OF CORPORATE RESOURCES To deliver broadly on its mandate and specifically on its business plan, it is essential that TSSA has sufficient and appropriate human, financial and information services resources. In developing its business plan, TSSA reviews these resources and the results of that review are summarized in the following subsections. 4.1 HUMAN RESOURCES As a knowledge-driven organization, TSSA s people are its most important resources. As such, employee engagement remains one of TSSA s strategic plan key performance indicators. The organization is undertaking a number of initiatives that influence engagement including focused action plans addressing team engagement results, use of effective change management principles in implementing any changes throughout the organization, and a heightened focus on employee learning and development led by an initiative to establish a Training Centre of Excellence. TSSA ensures that it has sufficient and qualified talent to execute its delegated responsibilities and business plan initiatives by regularly monitoring staffing levels and focusing on succession planning for key roles. For example, TSSA added resources to the Fuels inspection team last fiscal year to address identified priority inspections. TSSA continues to have relatively low turnover rates compared to the market. Given the diminishing supply of resources in some areas, moderate recruitment challenges have been faced over the past year; however, this has not been an impediment to delivering our core services to date. TSSA continues to monitor the anticipated shortage of technical talent in the province and has implemented a recruitment strategy to identify inspector candidates from new immigrants, recent graduates and seasoned skillsets in key industries. Ongoing monitoring of appropriate compensation levels in the external market allows TSSA to remain competitive in the marketplace. TSSA is confident that it has the human resources to enable successful execution of its regulatory mandate and business plan. 4.2 INFORMATION TECHNOLOGY TSSA s further development of its IT infrastructure will be based on applications that best meet the needs of TSSA s business processes commencing with an enterprise-wide architecture and process design initiative. TSSA believes that foundational multi-year efforts in data management and IT governance will provide enhanced processes and technology tools across all core mandated activities such as Engineering, Inspections and Authorizations, as well as support functions including Human Resources and Financial. TSSA will continue to invest in the oversight functions of data management and project management. Just over a year old, both functions are adding value towards creating a data-driven culture and instilling appropriate levels of oversight and guidance to maximize opportunities for successful project outcomes. TSSA s websites will be migrated from the current vendor s hosting solution to a new technology platform this fiscal year. This move will position TSSA in the future to further take advantage of digital technologies including updated Web functionality, ecommerce, social media and online learning. Investments to support TSSA s mobile workforce will continue this fiscal year for the delivery of safety services with a focus on providing a secure, stable and simple technology environment. Advancements include an update to the portable computer operating and application configurations, new network connectivity software, and market-leading mobile device management (MDM) software. Business continuity and disaster recovery capabilities will be strengthened with a concentrated move to consolidate equipment into a single, off-site data centre facility for primary computing requirements. A relationship with a secondary data centre facility will be maintained and will serve to provide uninterrupted computing services and heightened data and system back-up capabilities. TSSA is confident that it has sufficient information technology resources to enable successful execution of its regulatory mandate and business plan. 20 Technical Standards and Safety Authority Business Plan 2014-15 21
4.3 FINANCIAL RESOURCES The fiscal year 2014/2015 budget represents management s commitment to provide stakeholders a prudent financial plan aligned with strategic priorities and overall vision goals. Management s focus on its regulated mandate coupled with a focus on value-for-money and innovation has resulted in a budget where expense growth is the lowest in TSSA s recent history. For fiscal year 2014/2015, TSSA remains committed to continued strong operating and financial performance supported by a sound system of internal controls. On a consolidated basis, the fiscal year 2014/2015 budget reflects total revenue of $70,190 and a net margin of $3,200, which falls within the 5% target established in the Memorandum of Understanding with the Minister of Government and Consumer Services. The fiscal year 2013/2014 revenues were unprecedentedly high, exceeding budget by 6% while operating expenses were also in excess of budget by 3% inclusive of an accelerated amortization adjustment. Revenues reflected the implementation of a revised fee structure effective, May 1, 2013, while the fee impact of certain punitive non-compliance fees was under-estimated. Excluding the impact of a non-cash amortization adjustment related to TSSA s information system, operating expenses met budget expectations. Readers are directed to TSSA s Management Discussion and Analysis (MD&A) in the Annual Report for a more fulsome review of the prior year s performance. Fiscal year 2014/2015 revenue growth of $1,501, or 2% over the prior fiscal year reflects a return to more modest growth. As approved during the May 2013 Fee Review, the Boilers and Pressure Vessel sector is the only program with a planned fee increase, approximately 3% effective May 1, 2014. No new fees, or other adjustments, have been reflected in the 2014/2015 budget. In addition, this budget assumes revenue generating resources remain equivalent to fiscal year 2013/2014 commitments, including field inspectors. Fiscal 2014/2015 operating expenses of $67,455 reflect growth in expenses of $1,999, or 3%. The majority of expense growth is associated with employee increases made during fiscal 2013/2014, the full year impact now reflected in fiscal year 2014/2015. Staff compensation costs have also been adjusted for normal salary and wage market-based adjustments as applicable. As noted above, total TSSA staff complement for the fiscal year 2014/2015 budget remains equal to the prior fiscal year, reflecting TSSA s commitment to value-for-money and enhanced productivity. A key priority of TSSA s plan remains its investment in risk-informed decision-making, information technology, public education, employee development and other foundational initiatives. Through cost reductions in other areas, TSSA is able to maintain investments in innovative safety initiatives. TSSA also remains committed to ensuring it has the capital and reserves to enable funding for these initiatives, and the ability to absorb any future unforeseen adverse events. TSSA s capital budget for fiscal year 2014/2015 is projected at $2,269, a reduction of $824 or 27% from the prior fiscal year. As noted above, further development of the TSSA s enterprise resource and planning system has ceased and a small allocation of capital has been made for the enterprise wide architecture and process design initiative. In addition, essential system improvements, including the piloting of an advanced enterprise content management system, and other information technology enhancements outlined above are core to this year s capital budget. The balance sheet is expected to remain solid and liquidity continues to be strong based on prudent management of working capital and positive cash flow. TSSA s liquidity ratios also remain strong, and third party debt financing remains unnecessary. TSSA continues to monitor its reserves targeted at 25% of budgeted operating expenses to ensure adequate capital for unforeseen economic events to support the business with its long-term vision and goals. TSSA s investment portfolio of high-grade, low-risk investments remains within policy and is closely monitored by a third party investment manager. TSSA is confident that the established operating and capital budgets to enable successful execution of TSSA s regulatory mandate and overall business plan. TECHNICAL STANDARDS AND SAFETY AUTHORITY STATEMENT OF INCOME AND EXPENSES (In thousands of dollars) Year ended April 30, 2014 with Fiscal Year 2014/2015 Budget 2013/2014 2014/2015 Actual Budget Changes $ 000 $ 000 $ % REGULATORY BUSINESS: Boilers and Pressure Vessels/ Operating Engineers Revenue 13,622 14,367 745 5% Elevating and Amusement Devices Revenue 25,911 26,087 176 1% Fuels Revenue 22,223 23,247 1,024 5% Upholstered and Stuffed Articles Revenue 3,697 3,686 (11) (0%) Total Revenue 65,453 67,387 1,934 3% Expenses 63,015 65,683 2,668 4% NET MARGIN 2,438 1,704 (734) (30%) 4% 3% NON-REGULATORY BUSINESS: Revenue 3,236 2,803 (433) (13%) Expenses 2,441 1,772 (669) (27%) NET MARGIN 795 1,031 236 30% 25% 37% TOTAL TSSA: Revenue 68,689 70,190 1,501 2% Expenses 65,456 67,455 1,999 3% NET MARGIN 3,233 2,735 (498) (15%) 5% 4% TECHNICAL STANDARDS AND SAFETY AUTHORITY CAPITAL EXPENDITURE (In thousands of dollars) Year ended April 30, 2014 with Fiscal Year 2014/2015 Budget 2013/2014 2014/2015 Actual Budget Changes $ 000 $ 000 $ % Capital Expenditure 3,093 2,270 (823) (27%) 22 Technical Standards and Safety Authority Business Plan 2014-15 23
5. MANAGING RISKS TO DELIVERY OF THE PLAN TSSA continues to identify, assess and evaluate its risk exposures and put into place mitigation plans to manage risks that have the potential to inhibit the organization s ability to achieve its business plan objectives. Design enhancements to TSSA s enterprise risk management process, developed in fiscal year 2013/2014 reflecting a best practices review, are being implemented during fiscal year 2014/2015 in conjunction with the strategic planning process to ensure a stronger link between enterprise risk management and planning. As part of this year s strategic planning process, TSSA will apply the application of risk assessment criteria to its strategies as a means to assess the future achievement of strategic goals. An open, competitive bidding process will also be initiated to source a technology tool to centralize risk information and automate and document strategic planning, enterprise risk and internal audit information. 6. PERFORMANCE MANAGEMENT TSSA sets annual goals and performance targets in the form of a balanced scorecard. The balanced scorecard enables TSSA to identify goals, monitor and manage performance, and report on performance outcomes with respect to the needs of its various stakeholders. TSSA is committed to the balanced scorecard generally reflecting a stable set of performance metrics that encompass all regulated sectors and enable a year-to-year comparison. TSSA reports on its performance against balanced scorecard targets in its annual report. TSSA utilizes the results of the assessments, both accomplishments and challenges, to determine root-cause of its successes and shortfalls as a means of enhancing its future performance. The fiscal year 2014/2015 balanced scorecard is provided in Appendix 1. Consistent with a strategic focus on data governance, TSSA is committed to achieving the highest standards for critical data used for delivery of its safety mandate, as outlined in the Governance section of this plan. Going forward, TSSA will report on progress made and results achieved in putting these commitments in place in its annual report. As a result, the historical metric limited to incident data has been removed from the balanced scorecard. In conjunction with the Ministry of Government and Consumer Services, TSSA set targets for health impacts in its strategic plan and reports on achievements using the percentage reduction in the risk of injury or fatality. This measure, supported by TSSA s RIDM processes and Fatality-Equivalent measures, will be accompanied by data for fatalities, permanent injuries and occurrences, published in TSSA s Annual Safety Performance Report, available on TSSA s website at www.tssa.org. This new approach should be more intuitive and therefore more easily understood by a wider audience. More information regarding specific industry sectors, including advisory council and performance reporting, such as compliance and safety outcomes, and customer value survey results can be accessed through TSSA s website at www.tssa.org. 24 Technical Standards and Safety Authority Business Plan 2014-15 25